BAKU, Azerbaijan, February 19. In line with the regulation, the non-Binding phase of the new 2023 Market Test for expanding the capacity of the Trans Adriatic Pipeline (TAP) was launched in July 2023 and it is still ongoing, Luca Schieppati, TAP managing director, said in an exclusive interview with Trend ahead of the Southern Gas Corridor Advisory Council’s meeting to be held in Baku March 1.
“The strategic importance of the SGC and TAP has been recognized in the REPowerEU plan which calls for the intensification of cooperation with Azerbaijan and the scaling up of TAP’s capacity to increase the gas supply to the EU and the Western Balkans. In July 2022, the EU signed an MoU on a Strategic Partnership in the Field of Energy with Azerbaijan, with a view to double the capacity of the SGC to deliver at least 20 bcm/a of gas to the EU by 2027. The current nominal transportation capacity of the pipeline is 10 billion cubic meters per year (bcm/a) with the potential to be doubled to in excess of 20 bcm/a,” he said.
Schieppati pointed out that TAP’s expansion capacity is offered to the market through regular Market Tests in an open, transparent, and non-discriminatory way.
“Market Tests are held at least every odd year. The Market Tests are structured in two phases, the non-Binding and the Binding phases. The 2021 Market Test was completed earlier this year and it resulted in binding commitments, which will add another 1.2 bcm/a to the pipeline capacity by 1 January 2026. This first step of expansion reinforces the SGC’s significance for the EU’s security of energy supply and paves the way for further expansions, which can be achieved in steps through participation in the next Market Tests,” he added.
The managing director pointed out that in line with the regulation, the non-Binding phase of the new 2023 Market Test was launched in July 2023 and it is still ongoing.
“We expect its Binding phase to take place towards the end of 2024. As a proactive regulated operator, TAP’s new draft Project Proposal will offer the market an updated full suite of capacity levels, covering the full range up to 20 bcm/a. The aggregated results of the non-Binding phase of the 2023 Market Test will be published in the Demand Assessment Report in due course, in coordination with the adjacent TSOs, confirming the possibility of the Market Test to proceed upon the market interest for new incremental long-term capacity,” said Schieppati.
TAP transports natural gas from the giant Shah Deniz field in the Azerbaijani sector of the Caspian Sea to Europe. The 878 km long pipeline connects with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, crosses Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
TAP facilitates gas supplies to South Eastern European countries through existing and prospective interconnectors. TAP is connected to Interconnector Greece Bulgaria (IGB) which started its commercial operations in October 2022, providing Caspian gas to Bulgaria, enhancing security of energy supplies in one more European country. TAP’s exits in Greece and Albania, together with the landfall in Italy provide multiple opportunities for further transport of gas from Azerbaijan to the wider European markets.
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